Bangladesh: Imported bulk, container scrap prices increase by up to $5/t w-o-w
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In Bangladesh, the imported ferrous scrap market witnessed a comparatively active week in terms of fresh booking despite Ramadan and a slower local steel market. Containerised shredded scrap from the UK and Europe improved by $3-5/tonne (t) w-o-w and stood at $412-415/t, while HMS (80:20) offers also edged up to $400/t CFR Chattogram.
Approximately 7,500-8,000 t of containerised deals were closed in the last seven days, involving various grades and origins, such as Malaysia, Australia, Chile, the Philippines, Europe, and Hong Kong.
BigMint's assessment for Europe-origin shredded scrap (containers) increased by $3/t to $412/t, while HMS (80:20) containers were slightly up by $3/t w-o-w to $400/t.
As per market participants, a couple of Bangladeshi scrap importers secured a bulk scrap shipment, including 18,000-20,000 t of Japanese H2 and 8,000-9,000 t of Singapore-origin HMS, on a CFR Chattogram basis.
BigMint's weekly assessment for US-origin HMS (80:20) bulk scrap witnessed a $5/t hike w-o-w to $395/t CFR Chattogram.
Japanese H2 scrap offers were in the range of $388-392/t, while US-origin HMS (80:20) bulk indicatives ranged from $395-398/t, with buyer inquiries at around $390/t CFR Chattogram.
A mill source said, "HMS (80:20) grade tradable enquires are at $390-395/t and shredded scrap indicatives are at $410/t from the US and Australia in container shipments."
A representative from a major trading house noted a nominal drop in demand from a major steel mill in Bangladesh this week, which led to slow trade in containerised quantities from that region. Domestic mills in Bangladesh are hesitating to accept offers ranging from $390-395/t from the UK/EU. Instead, they are opting for bulk bids for US-origin HMS in the $385-388/t range.
Recent market trends show that Hong Kong HMS bundles were offered to Bangladesh at $390/t CFR, although the selling price remains uncertain.
Recent deals:
- Around 1,000 t of Hong Kong-origin PNS were booked at $437/t CFR Chattogram.
- Approximately 500 t of Chile-origin HMS & PNS mix were sold at $418/ CFR Chattogram.
- Around 500 t of Malaysian-origin HMS & PNS mix were sold at $422/t CFR Chattogram.
- A parcel of 500 t of Philippines-origin HMS & PNS mix was sold at $395/t CFR Chattogram.
- Around 500 t of Hong Kong-origin HMS & PNS mix were booked at $395/t CFR Chattogram.
- Approximately 500 t of Malaysia-origin shredded were sold at $420/t CFR Chattogram.
- A parcel of 1,000 t of Hong Kong-origin PNS was sold at $432/t CFR Chattogram.
- Around 1,000 t of European-origin shredded were booked at $410/t CFR Chattogram.
- Approximately 1,000 t Australia-origin HMS (90:10) were booked at $395/t CFR Chattogram.
- Around 1,000 t of Australian-origin PNS were booked at $420/t CFR Chattogram.
Domestic market: In the domestic sector, rebar prices ruled at BDT 89,000-90,000/t ($811-820/t) exw-Dhaka, and BDT 96,000-96,500/t ($875-879/t) ex-Chattogram, while billets were at BDT 77,500-78,000/t($706-711) exw. Local ship-breaking scrap prices are at BDT 66,000-67,000/t ($601-610/t).
In the first eight months of FY'24, Bangladesh spent $2.03 billion on external debt servicing, a 43% increase from FY'23. This rise is mainly attributed to doubled interest payments on foreign loans, reaching $805.9 million. Loan commitments surged to $7.2 billion, prompting officials to aim for $9.92 billion by fiscal year-end. Despite concerns over growing foreign debt, Bangladesh's debt-to-GDP ratio remains stable at 35.6%. An economist suggests establishing three "super banks" to address banking sector weaknesses instead of mergers. Critics express concerns about the effectiveness of bank mergers and potential adverse impacts on the economy, including inflation and reduced lending to the private sector.
Outlook: In the near term, the outlook is expected to follow global cues, which might contribute to the uncertainty. There is no apparent reason for any price decline in the coming weeks, looking at the current market scenario.
